Not that there is a substantial weakness to be feared for the Dollar, but the week's positive start in stock markets all over Asia is promising - especially since we are out of the summer doldrums. If the old inverse correlation between Dollar and stock markets is still in function, and we believe that this is still the case, then it would be quite worthwhile to look for selling points for intraday short term trades in the currency, buying it back later in the day - a strategy perhaps for the whole of this week.
Accordingly we put our trading bands for the Dollar lower today, as projected in detail in the list below. Note that due to US Labor Day there could be low volatility later in the day - US stock markets remain closed.
Intraday Market Outlook for Day Traders
EUR/USD
After another rally up to the 1.4360 level this European morning, the market is loosing steam now, most probably on correction path down to the 1.4320 mark. Right now at 1.4350, we expect that 1.4320 mark to be another buying point, with a potential up to 1.4360 again.
GBP/USD
Cable rallied even more in early European trading, right now at 1.6425, seemingly ready to attack the 1.6500 handle level. But in view of the heavily short term overbought situation we doubt this will happen soon. Let the market cool off a little to the 1.6380 level, and then look for another up move.
USD/CHF
The Dollar tended weaker against the Swiss Franc in this European morning, but in low volume, bitterly defending its 1.0550 support, right now trading at 1.0570. We only see a bumping along these lines, which will probably not broken today.
USD/JPY
The now three days old uptrend against the Yen continued in this European morning, now in a sligh downward correction from highs around 93.30 to currently 93.05. We see this correction about to be finished, and a later pick up of the uptrend again, leading today towards the 93.60 level.
Accordingly we put our trading bands for the Dollar lower today, as projected in detail in the list below. Note that due to US Labor Day there could be low volatility later in the day - US stock markets remain closed.
Intraday Market Outlook for Day Traders
EUR/USD
After another rally up to the 1.4360 level this European morning, the market is loosing steam now, most probably on correction path down to the 1.4320 mark. Right now at 1.4350, we expect that 1.4320 mark to be another buying point, with a potential up to 1.4360 again.
GBP/USD
Cable rallied even more in early European trading, right now at 1.6425, seemingly ready to attack the 1.6500 handle level. But in view of the heavily short term overbought situation we doubt this will happen soon. Let the market cool off a little to the 1.6380 level, and then look for another up move.
USD/CHF
The Dollar tended weaker against the Swiss Franc in this European morning, but in low volume, bitterly defending its 1.0550 support, right now trading at 1.0570. We only see a bumping along these lines, which will probably not broken today.
USD/JPY
The now three days old uptrend against the Yen continued in this European morning, now in a sligh downward correction from highs around 93.30 to currently 93.05. We see this correction about to be finished, and a later pick up of the uptrend again, leading today towards the 93.60 level.
